Transcripts For CNBC Closing Bell 20240712

Resee recovery in retail sales dow down 271 session lows 59 minutes left of trade the nasdaq has been the underperformer is actually off its lows were kind of moving around, as we speak, in the final hour. All the major indexes are lows ahead on todays show, well speak to mike sievert. Well get an upgraciointergrac sprint and the president of the university of arizona will outline his plan for the fall semester as cases and hospitalizations rise in that state. Well focus on the big stories were watching at this hour Steve Liesman with details on todays jobless claims will is digging into Big Bank Earnings and meg has details on johnson and johnsons results. But, steve, start us off with the jobs picture. You know, were getting two different stories from the jobless claims one of improvement and one where the improvement has kind of flat lined. Well take a look at the numbers. Claiming coming in at 1. 3 million. Above expectations dow just 10,000 on the weekly jobless claims thats kind of flat lined. But the continuing claims down again. A good number down 400,000 but high at 17. 3 million and the pandemic unemployment assistance with those not typically eligible freelancers and contractors, still a big number 14. 3 Million People receiving that take a look at the chart, we rocketed up to 6million a week. Huge numbers it came down steadily but it kind of flat lined at the 1. 3 millionaire that causes concern about the jobs picture however, the continuing claims number does not. The Michael Gapen reported the rate may be hiring in the northeast but statement its slowing in the south retail better than expectations. Here is what we get after most the big numbers are. Down 32. 5 for the Second Quarter. Good bounce back in the third quarter. And, again, in the fourth. We dont make it all up for the year the median forecast of the economist down 4. 4 for the full year 2020. Sara i feel like people in washington arent talking about or thinking about as much as they should be the expiration of the extra Unemployment Benefits when they run out. I know this has become a partisan issue and, you know, theres talk of doing something, steve. But what will happen if they dont extend that extra 600 bump i dont think theyve appreciated how much that extra money has held up the economy and its a direct line, sara, from the stronger retail Sales Numbers weve had. There are several studies that helped retail sales really help keep the economy being worsen than it otherwise would be even though its pretty bad. And you are absolutely right you shouldnt feel that way. You should know that way because if they were so concerned, how is it possible thaw left it well into the second half of july to begin debating what is going to happen when these benefits run out at the end of the month. Right. Exactly get something done all right, steve thank you. Stocks are moving in Different Directions wilfred, what is the story as you said, moving in Different Directions because we got this classic snapshot of Investment Banking versus commercial banking Morgan Stanley first smashing estimates on both the top and bottom lines every business line beat expectations as with the other Investment Banks, fixed income currencies and Commodity Trading are attracting the most attention. They also saw their provisions fall from already relatively low 407d million in q 1 to 239 million in q 2 bank of america also beating on both lines and had strong trading revenues but the stock trading due to the obvious signalty of the Business Model net interest margins falling to 1. 87 . Their provisions of 5. 1 billion obviously way higher than Morgan Stanley given the totally different business mix but better than expected in a smaller quarter over quarter increase than others like wells fargo. M bank of america is down 30 wells fargo, by the way, down over 50 year to date. Its a nice snapshot with the different performers another swing factor Going Forward is capital returns to shareholders here is james gorman on that. Were talking about 10 to 10 billion of excess capital and still laggering for some relief on the not to get too weedy about it but the way it calculates in compensation we want World Class Technology and invest in that and the next generation that jim is talking about that is critical to the future growth. We should increase our dividend and we should be back on the buy back trail not just yet lets get through the new stress test in september. Lets see how the economy performs in the next three to six months but 2021, you know, Morgan Stanley should be doing something for the benefit of our shareholders and for our clients. We certainly are not there yet, sara, in terms of reinstating buy backs. But an optimistic call on the analyst call and the interview from james on the possibility of getting that and, perhaps, if youre looking for why Morgan Stanley is doing better than Goldman Sachs year to date it had a Better Capital performance in the stress test and may get to that point sooner than Goldman Sachs but either way, the clear winners of the week are Goldman Sachs and Morgan Stanley and then once you go into the commercial banks, its the ones that have bigger exposure to trading within them like jpmorgan that have done best and the ones that are pure commercial banks like wells fargo who have done worse. So, are you saying that wall street is finally really starti starting to differentuate between the banks in theyre not just trading as one group based on where the 10year yield is. Based on their exposure you highlighted. Yeah. Absolutely the Investment Bank performance versus the commercial Bank Performance shows that year to date then you throw in within the commercial banks the bank of america down sort of 30 year to date compared to a wells fargo down 50 year to date. Theres differentiation. The one common theme that units all of them, whatever that business mix is, sara, is the tone on the jut look for the rest of the year thats one of uncertainty. And that is the little bit of surprise that you get when you look week to date, kpw is higher 1. 4 if you went off the tone of the macro outlook, you wouldnt have expected it to rise this week. And, of course, coming off the low base for a sector that is declining sharply year to date explains why they are higher banks lower for the most part today. Johnson johnson out with results today. The Company Giving an update on the vaccine candidate. Meg has the latest. Hey telling us this morning the Company Plans to start its phase one trial of its Covid Vaccine next week. The first human trial will be more than 1,000 participants between the ages of 18 and 55 as well as a group 65 plus to include the vulnerable older population theyll start this the 22nd in belgium and the following week in the United States saying on the call they plan to start a phase two in the netherlands, spain, and germany and pursuing a phase one potentially in japan now that lines them up, if all goes well, to start a phase three trial. Theyre in discussions with nih at the end of september. That puts them a few months behind pfizer that is starting the phase three this month and astrazeneca in august. But j j has a lot of manufacturing power. And the ceo told us this morning on squawk box. We have two in our netherlands facility we have added to the capacity and signed some definitive agreements with contract manufacturers here in the u. S. Well be able to supply at a run rate of probably better than a billion vaccines by the end of next year. And, guys, here is how it lines up all the projections weve seen from the frontrunner companies in terms of how much theyll be able to supply pfizer 100 million doses this year. Astrazeneca already signed agreements to supply 400 million doses and a billion at the end much next year and j j with the billion forecast, too. This is why everybody says multiple vaccines are so important to be able to supply the whole globe. Back to you. Yeah. A lot of people are going to need them. Meg, just a quick question on this study that made the rounds. It was published over the weekend from Kings College in london about antibodies showing antibody responses may actually wind down after as little as two months and i wonder what the vaccine implications are for that and if its denting the optimism weve seen this week over the breakneck speed the manufacturers are coming out with the trial. Its a question people are paying attention to. You hear a lot of talk about the rest of the tcell responses those are getting a lot of attention paid to them and the astrazeneca results well see on monday published as well as for moderna. The idea the antibodies dont last that long, do the tcells last long enough to provide immunity these are things that will be studied in the large trials coming up. Meg, thank you so much. After the break, well speak with tmobile ceo about how the integration with sprint is going so far plus, a big new push to prevent robo call scams. Youre watching cnbc experience the adventure of a bigger world in a highly capable lexus suv at the golden opportunity sales event. Lease the 2020 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Experience amazing hey lily from at t here. With some helpful tips. Tip 1 you can currently get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry nancy, i forgot you were there. Get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Americans have lost more than 80 million this year to scams related to covid19. Between may and june alone, scams focus order the virus soared 70 tmobile hoping to protect its customers against those scams and others with its new scam shield its a Free Initiative including enhanced caller id, a free second number, and scam id and blocking our producer claims he gets more robo calls than calls. How are you helping to deal with this in a way your competitors arent its a huge issue thats what the uncarrier has been about we figure out the pain points bothering people in this industry and we tackle them to your lead in, i mean, these losses people are experiencing here during covid, its just shameful last year there were 58 billion robo calls placed in this country. People lost 10 billion from the crimes that were pursuant to the calls. Thats nuts. So the industry is just got to do more. Thats what todays breakthrough announcements were about so my question is, how much is it going to cost. It follows the strategy of john legre announcing the uncarriers and worth it and added to market share, now youre a different company, a combined, bigger, solid number three player, is it worth the cost of doing the add ones of course and, you know, the answer is really we first just do what is right and solve the pain points. People love that about us and wind upcoming to tmobile. Were a Growth Company we felt compelled during the quarter to update our guidance we would not do zero to 150,000 new postpaid net ads but more like 800 to 900,000. Were a Growth Company and we need to do more to solve the pain point in the industry you mention verizon. Theyre profiting from this initiative we say things in the industry have to change at verizon you pay 7. 99 for a feature that would protect you from scams and robo calls. Already tmobile is 30 better than everybody else. This is a huge problem we shouldnt be profiting from the robo calls that our networks are helping to bring you the Ai Technology will identify the calls and stop them. And every customer is going to get a scam shield app that allows them to provide us with direct feedback as to which calls were scammed so next time you get the calls, youll be able to with a single touch tell us they were scams and that informs the ai engines in our network and it gets better and better and better and better even without todays announcements. We blocked 25 billion robo calls in the last three years alone. And 11 of our traffic was blocked or identified as scam calls just in the recent weeks this is a huge issue its the number one complaint to the fcc and we knew a comprehensive endtoend solution was required. Thats what scam shield is all about. As you consolidate sprint, do you think prices will stay where they are or do you think well see a price war rise fairly soon again . Well, two things. First of all, yes. Solving pain points has gotten us here. We have done 16 breakthrough uncarrier moves so far each one identified something customers were passionate about. Customers give us credit for addressing the big issues in this industry and changing the industry for good. And thats driven our brand. But to your point, look, people want a couple of things on top of that. They want a great value and they want a Great Network thats what the new tmobile is about. Were building the worlds best 5 g network with the unique resources of the combined company. Were also going to bring a new level of competition we have the cost structure to enable it now. Well bring a new level of competition starting with our unification under the tmobile brand coming up on august 2nd. I think, you know, at t and verizon should be a little bit nervous about that. Well, how is that the integration going . Breit is expecting about billions of dollars to come in the next few years. Its going fantastic. Were ahead of schedule. You know, now the government did accidentally give us an extra year to plan this merger so, you know, its not surprising to have itscheduled its ahead of schedule our team has done a phenomenal job getting this network built faster than we had expected. We already had mid band 5g, the center piece of our strategy we have it deploy in five of the biggest cities new york, l. A. , chicago, philly, houston big cities and people are seeing 300 meg bit per seconds average. Thats ten times faster than 4g lte across the country, 23 of the hand sets are seeing 5g. 23 availability we think its best in the world. You want to know what the stat is for verizon now if you have an enabled hand set, 0. 4 so verizon has been breathlessly talking about 5g for years now the truth is, their strategy based on millimeter wave wont reach people the way ours is its Game Changing speed and capability. Pivoting a little bit away from tmobile. Everyone is expecting 5g is a gamechanger for Companies Like apple. Even 23 of yours is the highest. Thats still pretty low to suggest everyone will be transitioning or need to transition or have a benefit from transitioning to a 5g hand set until much later next year. Right i mean, even though this has been talked about for awhile, were at the beginnings of the game this is like 2010 in 4g when verizon jumped out in front of everybody. And you saw how that changed the Competitive Landscape through the 4g era they were able to claim a mantle of network leadership. Weve jumped out in front of everybody in the 5g era. And customers will be benefitting from that for the next decade. And i think itll change again the Competitive Landscape as people realize theres a clear leader in the 5g arena and that is tmobile. They dont appreciate the benefits that have yet but they will. When will 5g hand sets be necessary for consumers across america . I think theyre going to be table stakes next year i think well see broad availability this year i certainly hope we do and so this is the formative year where already on the android side the biggest flag ship hand sets have 5g and they have our 5g strategy built in but im hoping thats across the board or later this year well have to see what happens in the industry. Its important the networks are here now and the capabilities are here. Were building the highest Capacity Network in u. S. History. Were finally breaking down the tradeoff people need to make. Am i getting the best network or the best value well be uniquely positioned to deliver both to consumers and businesses. E ya. That will be a big question mark whether apple comes out with a 5g phone as early as september generally on the environment and the recession, now that states have opened back up, are you seeing any improvement are you able to open the stores and get the promos through in a way you were not over the last few months on a related note, what about Small Business thats one of the reasons we timed this integration for august 2nd we originally had a 90day plan putting it at july 1st we did push it out about a month because of covid we were telling people mid summer for the integrated launch today we unveiled its august 2nd. It shows were seeing interest out there. People are coming back but, look, its important we do it safely across the country tmobile requires masks in our stores its not optional. If people need special accommodations were able to meet them over the phone or outdoors were doing everything we can to keep our customers and team safe in order provide this essential service to consumers and, you know, consumers and businesses, to your point, have realized through this crisis that this service is essential thats important as we enter the tighter economic circumstances that as we unfold following the pandemic and people will be they wont drop this category they may ask, if they have the right provider they may ask if theres an opportunity to save money without trading off network performance. Well be there as an important alternative. Thank you good to check in we have got just about 36 minutes left of trade. Take a look at the dow were off sessions low now we recovered a bit down 182. Boeing the biggest drag. S p off about. 5 . And the nasdaq gained a little bit of ground. After the break, spotify another high profile pod cast deal lfi y ionheetlswel lloun t dai next businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Wow. Jim could you ipop the hood for us . . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. 33 minutes left to go. Here is is a check on the markets. Dow is down 191. Boeing the biggest drag. Walgreens the biggest winner you have some defensive groups holding. Utilities, materials, and Consumer Staples are the positives. Otherwise a lot of selling the nasdaq down almost a percent. Well jump on individual Market Movers cruise stocks with airlines, travel plays are falling today reversing yesterdays gains. Norwegian, American Airlines among the worst performers they were the best yesterday shares of Virgin Galactic up sharply on news of a ceo a 30year veteran of disney. Hes got the Consumer Experience but no aero space background unless you count the recently finished star wars land at disney park. And spotify is rising on another high Profile Partnership its former First Lady Michelle Obama launching the pod cast the obamas have a production deal with netflix and her memoir was the bestselling book in the u. S. In years. So michelle obama, kim kardashian, joe roggin they are quadrupling down. At a time when shares have fallen they are. The other spin is how brilliant these deals are with the obamas. Each time we announce them we say another exclusive deal they have managed to separate out the tv production from the book from the pod casts. Congratulations to them. They must be doing well off it i guess pod casts are different from tv shows. If theyre similar theme interview type shows you think its not exclusive either way spotify is up still ahead, moments away from the first faang report of earnings season. Will netflix be able to keep pace after last quarters blow out subscriber number . They added 50. 7 million in q 1 the forecast from analysts is over 8 million in q 2. Can they do that, if they dont perhaps shares will slip after the extrrd their run theyve been on this year. Well check on bonds treasury yields dipping today 0. 62 on the tenyear. Tada did you know Liberty Mutual customizes your Car Insurance so you only pay for what you need . I should get a quote. Do it. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back 28 minutes left of trade for an update on coronavirus hot spots across the country, texas and florida adding more than 10,000 new cases yesterday florida now adding more daily cases than new york was adding during its peak back in april. The mortality rate, though, is much lower in florida and texas, though texas reporting 136 deaths yesterday. Florida reporting 156 whereas new york had reported daily deaths topping 1,000 on some of its worst days meantime, the Trump Administration has ordered hospitals to begin reporting data to the department of health and Human Services and to no longer report it to the cdc. This means information like the number of patients each hospital is treating and the number of available beds and ventilators may no longer be available to the public since the hhs data base is currently not open to the public unclear what the cdc will do with the information thats their thing they have the whole data drove to figure out, you know, where we are in this pandemic and how to make recommendations. Theyll obviously still get it but itll unclear what the public and what wall street will actually get in terms of the information and the trends. Yeah. Well have to wait to see on that front as we stand on wall street were off the lows were down 150 on the dow. The nasdaq continues to lag. Its down 0. 6 time for the cnbc news update with sue herrera. Hello heres whats happening. A Washington Law Firm tells cnbc it has been hired by the citys nfl team to independently review its, quote, culture policies, and allegations of workplace misconduct a League Source also tells espn some partial owners of the team have hired an Investment Bank as they try to sell their stakes. All of this comes as the teams primary owner, dan schneider, is deciding on a new name after retiring one that had been seen as a racial slur against native americans. Within the last hour, colorado joined arkansas as the most recent state to require face coverings as covid19 cases search in the south and west the governor said he sees warning signs all around we are on the knifes edge many nearby states have shown us what will happen its not what may happen its what will happen. If we dont regain our footing and take social distancing at mass seriously horse raging at san diegos delmar racetrack has been suspended until a week from tomorrow 15 jockeys tested positive for covid19 you are up to date thats the news update this hour back to you. Wow thank you very much. A new lawsuit could through a wrench in the grocery delivery plans. Hi, deirdre. Instay cart is suing corner start acquired by uber last year that will serve as the platform for grocery delivery in north america. In a uber responded with a at the same time. Shots have been fired. Get ready for the grocery delivery wars. Back to you. All right thank you. 24 minutes left of trading here is where we stand in the markets. Dow down 34. We continue to recover from deeper losses we saw at the top of the hour. The nasdaq off half a percent. Were cutting our losses here in half we have groups positive. Utilities, materials, staples, and Consumer Discretionary turning green in the last few minutes. Coming up next, about 24 hours ago when something very strange started happening on twitter. What started as a few hacked accounts quickly grew into a massive breach of highlevel officials and executives well discuss the fallout with the former u. S. Chief Technology Officer from the white house thats next. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Get e trade and get more than just trading now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. We could never do what they do. But what we can do it be a partner that never quits. Verizon is the most Reliable Network in america. Built for interoperability and puts First Responders first, giving their calls priority, 24 7. We do what we do best so they can too. An investigation into yesterdays twitter hack twitter said the hack which targeted vips like elon musk and former barack obama was a coordinated social engineering attack and the company saying moments ago it sees no Current Evidence that hackers accessed passwords in the attack. Joining us now to discuss is aneesh chopra. Thank you so much for joining us if they didnt access passwords, what do we think might have gone on who is to blame for this is this still very much down to lax controls at twitter . Well, i would say there are two ways to access information in the system. One is the user logging in what we do in our personal lives. The other are administrative access provisions. Staff with certain credentials can access almost the entire data base. These have been the sensitive areas for attack if enterprises some of those, they can do more harm. The whole industry, twitter is not alone. Struggles with how to protect against the attacks. We know we view these as the warfare in words of my friends in the d. O. D hackers can choose many ways to come in. We can constantly try to protect against around our i. T. Systems but we know theyre going to be constantly pressured. The key here, and this is somewhat good news at least they were able to uncover the attack about an hour or so in their Response Time was not ideal but better than perhaps having this linger on. Its a wake up call for the system as a whole. Do you think that twitter was more susceptible to this than other social Media Companies or not fair to point the finger specifically at them i would say that every digital platform is susceptible. If you ask me what is keep me up at night issue, i would say a cyber attack anyone and everyone is susceptible. I think most people view these attacks as worrisome when they involve financial scams. Thats a small impact or your personal information like your Health Records but in this case, twitter is a administratorly concerning attack for election misinformation thats one more reason to be worried if it has downstream effects that other attacks might follow that are successful. As this was unfolding, we were all sort of glued to the president ial twitter account, which we know is quite active. It doesnt look like he was brought into that. The white house spokesperson did say his account was secure and that the president will not stop using twitter. Does he have special protections on his account to make him less vulnerable to systems like that . Im not privy to that but he might be keeping his account secure from the way he accesses but somebody has access on the back end and if that particular process is comprised, then were all at risk. It is possible we dont know maybe his account was in some form or fashion capable of being manipulated but the attackers may not have chosen to use his account to communicate out we dont know, at this stage, exactly the scale of it. My presumption would be almost all accounts might have been available for the attackers, if they had mrtdive access, which appears to be. They targeted the most wealthy people out there if you want to stop it happening even in the first place, but we are also getting a reminder about the risks around bitcoin whether they should be more regulation there is it easier to track and find after it didnt exist and it went through traditional dollars and Banking Systems . I would not take the bitcoin story from this as the area of greatest focus i think mostly its about manipulating the Digital Services we rely upon. It happens to be misyuted for a relatively modest scam on bitcoin. But the bigger issue is what happened if a message was sent that had Foreign Policy implications, market moving implications, election implications, and so here im more worried about the fact that someones accounts were comprised for use. The fact they were used for bitcoin, its part of the overall debate were having about keeping that Information Secure i dont think this materially moves the needle on bitcoin regulation. Thank you so much for joining us, aneesh. Thank you for having me. After the break a red downgrade for disney in the one sector that could do well during the backtoschool season. Well take you inside the market zone next. Youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for First Responders. Firstnet. The only officially authorized Wireless Network for First Responders. Because putting you first is our job. Save without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. 14 minutes left in the trading day. Were now in the closing bell market zone. Commercialfree coverage of the action going into the close. Here to break down the crucial moments of the trading day is stefanie link is back. And sylvia joins us, as well well kick it off with the Broader Market stocks off the worst levels but under pressure after worse than expected jobless claims data earlier. The dow on track to close lower for the first time in five days. We were down 280 when we started the show were down 132 again, some dip buyers Communication Services part of the theme here that turned positive. A lot of media stocks are higher staples also doing better along with utilities, which is the defensive trade. The buying, the buying urge continues. It continues to be a Glass Half Full market. What is driving it, in your opinion . Well, it doesnt have a defensive feel to me utility staples outperformed i think the bigger story, though, even though communications rally technology did not. And its the rotation out of technology and its the relative underperformance weve seen pretty much all week of the nasdaq 100 under performing the s p 500. And that is what is our leader without the leadership, you kind of feel a little more defensive. Lets wait for earnings. I think earnings will help this sector lets also keep in mind the s p is flat up a year and the nasdaq 100 is up 20 on the year with many of these stocks up double, triple, quadruple that i get why people are taking profits. I think tech got very crowded. I think you have to be creative on evaluation justification at these levels you have to look at things like total Addressable Market you have to look at ev to sales and that kind of thing and not the traditional pe some people get uncomfortable with that, myself included, by the way. I believe in the total Addressable Market story for technology when i have cloud growing to 600 billion in the next two years, internet of things and a trillion dollars over the next two years, wearables at 50 billion over the next couple of years, those are the places where you want to have exposure. Just dont chaise these stocks and wait for pullbacks like were getting now. So buy them again now i know you sold out of some of your tech names of late or at least trimmed them are you rebuying not buying yet. Im waiting a little bit more of a pullback there are some stocks. Amazon is down 6 this week alone. I trimmed that i trimmed it at 40 and it went up 70 clearly i want it to come down facebook i saw it again, yeah, absolutely the price for everything, wolf, but i think you be patient in the market especially given we are seeing the rotation at this point in time. Sylvia, nasdaq composite is down 1. 4 and the dow up 2. 5 . I mean, its not a massive rotation yet would you be tempted to take profits in some of those tech names . You know, i think that this is just par for the course with some of the market uncertainty were expecting to see this year growth has growth has outperfore this year by about 30 or so and the names that have really led that have been the tech names. Were expecting to see earnings pull back 44 , but twothirds of the names in the market have done well. So, you know, i agree with stephanie. I love the idea of looking at the work from home types of things, you know, anything that touches cyber security, cloud, online communications, new data sharing and things like that i think these are good days to buy on the dips there. You know, the big names like the amazons and microsoft continue to have a good story for me in the future because i think the hybrid versions will continue to support a lot of those names rising coronavirus cases sorry in florida and california will hurt disney. Thats according to a new note downgrading disney to market performance. Cowen says disneys orlando park could be forced to close again and restrictions in effect until at least 2021. Disney domestic parks wont recover to 2019 profitability levels until 2025. Cowen also doesnt expect any new film releases this year and only a modest slate in 2021. Still around that 120 level, kind of splitting the 150 high and the 80 low so far this year. Stephanie, where do you stand on this one so i used to own this last year, and then i sold it in february about 140 basically it was the euphoria of disney plus that got me a little bit on edge. Everybody was on one side, very, very bullish unfortunately this company is in the eye of the storm with covid. I think the notice spoton in terms of covid affecting all of their businesses and there is really nowhere to hide i mean, the stat that you just referred to, the nonprofitability return of the fiscal 19 numbers until fiscal 25, thats astounding to me thats the first thing second thing clearly the film slate is going to be hampered a bit there, too and then of course you have espn and we dont know whats going to happen with sports. All at the same time when theyre spending a ton of money on disney plus, which isnt going to be profitable until 2023 i think you have time on this. Perhaps if it got to the 100 level, i would get more interested in it but right now i just dont find it compelling. Lets talk about retail sales from the back to School Shopping season could hit a record 102 billion according to the National Retail federation a 26 increase from last year. But it could be a totally different set of retailers benefitting this season as many parents prepare for another semester of remote learning. Laptop sales are expected to surge. 55 of shoppers surveyed expect some classes to be from home this fall. And of those 72 say they expect to buy new computers, Home Furnishings or other supplies to study from home. Do you like this as an investment theme around the retailers . It certainly is counter intuitive that back to school would be doing very well yeah, absolutely. For me it is almost again going back to that tech story. A lot of the parents that are home schooling their kids are going to go out and buy laptops and ipads and different types of technology that support the at Home Learning that theyre going to have to do. Again, it plays into whether its schooling from home or officing from home you have this work from home theme where, you know, there is a huge reliance on technology, onion line communication, the zoom boom type of names. And i think everything from the apple to microsoft, 5g, the work from home types of things will benefit from this. I think it is also a great opportunity because i think were just starting a societal change here. I think were at the bottom. I dont think the valuations in those names are too high if you look at some etfs, it might be a good way to position for that trend to me, it is a tech story. Stephanie, after a couple of weeks of slightly tempid data, what do you think . The bank of america call saying their Credit Card Spend data, which was flat was in june was actually slightly high in july, which might not be what people expected given the spike in cases. I mean, i think the consumer has been resilient 7. 5 month after month after last months number was revised higher to 18 . Thats huge, will. I would say this article on your site about this back to school phenomenon, i could see it happening, by the way. Electronics were up 37 in the most recent retail sales report. I think employment is certainly not great, but it is improving you have confidence has stayed pretty high actually which has been surprising to me. You have no inflation anywhere and then you also have a savings rate at 23 . Plus, you have another probably 1 trillion in fiscal stimulus coming in the next couple of weeks. Lets watch and see how that goes i think the consumer is okay, and im very encouraged by the data that we have seen in the last couple of weeks so the argument is that the consumer is okay because of the tremendous amount of stimulus that has been slowing. Thats why confidence has held up and thats why spending has held up. Thats all sort of artificially distorting the picture of what americans are feeling right now, which is joblessness with those benefits set to expire and run out. Well, and i think thats why it is really important that Congress Gets a bill passed. I think it sounds like in fact, today i read i have been hearing 500 billion. Today i heard 1 to 1. 5 trillion i think thats actually a pretty good thing i dont like that we have to prop up the consumer or prop up employees, but i do think i do think that there is a tailwind here. I think the stimulus is very much alive and well, and if they have to do more, theyre going to do more. Border markets improving again. S p down nasdaq down 0. 8 , jumping around there as you can see as we approach the Close Netflix giving earnings in just a few minutes. A key preview for us. Well, we are watching netflixs subscriber growth and where netflix can continue its gains from next quarter. 7. 5 million new subscribers. The question is how many subscriber edition netflix guides to. Analysts are forecasting 5. 3 million. In the Second Quarter Analysts Expect netflix to grow earnings 200 and revenue by 24 . Netflix shares have gained about 60 this year and 61 of analysts have a buy or overweight rating on the stock guys, back over to you. Thanks so much for that. Stef, up 63 today but down 4 this week does that make this setup any more easy or do they have to smash this number or else theyre going to slide i think they are going to smash the number if you look at the app down loads that you can get this data intraquarter, and it looks like the app downloaded 75 million times the netflix app if you look at the google app sites so the numbers are going to be great, i think the guidance at five million might be conservative. The question is did they pull forward. Thats the question. The question is what theyre going to do internationally because those International Numbers aring a actually coming down i want to hear a lot of different data points from the company today, but i dont like the setup, not up 61 . Are you a buyer at these pricey levels on netflix you know, i think im a sort of wait and see on this one. I think theyre going to crush the 8 million number. I think a lot of people are at home and have a lot of time on their hands and are signing up for netflix. I do agree with the idea that probably a lot of the users they expected to download and sign up towards the end of the year are probably up and on now the number of subscribers will matter i like the company is saying theyre becoming more cash efficient to the tune of about 1 billion or so but it is always the subscriber number with netflix that matters. If they crush that number, the stock will go up in the short term i think they probably have a lot of uncertainty because a lot of it depends on, you know, when people are back out of the house right now. We all have a lot of incentive to sit home and watch whatever it is, tiger king or some of the other popular shows. The s p is down only a third of 1 . There is the dow for you down 134 points it was down closer to 300 at the lows, which was at the start of this final hour of trade you can see that rally in the final hour of trade. The nasdaq remains down 0. 7 utilities, materials lead the charge utilities in particular up 1. 3 . Real estate and tech down at the bottom. Gold sharply down at 1 . The dollar rallied at that moment but the equity market at the close down 0. 4 in the s p 500 oust over half a percent on the dow. Nasdaq comp is down 0. 8 not too bad of a close, certainly well off session lows. Welcome back everyone to closing bell take a look at how we finish up the day on wall street lower. We did break a four day win streak for the dow but only down 135. I say that because in the last hour it was a bit of a recovery hour there we went positive at one point in the day but we were down as much as 180 in the final hour of the trade. Boeing the biggest drag. Walgreens the biggest winner the strongest, utilities, Communications Services and industrials. And that was the media story was technology did not have a great day. Nasdaq down threequarters of 1 Technology Near the bottom of the s p today right down there with some of the real estate names. And index of small caps up threequarters of 1 continues to break out here a little bit, showing some signs of strength. Some people wondering if this is the catchup moment. Investors are weighing we will break down netflixs results which are set to be released any moment now. The stock finished higher. Joining us to talk about the market today, stephanie link still with us. And Deutsche Bank u. S. Equity and global strategist joins the conversation i think you have been pretty constructive and have liked the market are you still feeling that way with the market continuing to climb to levels here going flat on the year for the s p 500 . Im sorry were you talking to me i just lost you there for a second. I was i was just wondering if you still like the apologies hold on one second my apologies, binky. We will come back to you in a moment but we just got the netflix numbers. So subs of course is the key paid net ads beat expectations we are looking for 8. 3 billion compared to the 15. 8 billion last quarter they had 10. 1 billion also of course we will be focussing on the forecast for q3, the guide or what people were expecting was 5. 3 billion there. That was lower at 2. 5 billion so a comfortable and impressive beat for this quarter of 10 billion net ads compared to the forecast for the q3 guide of 2. 5. The forecast was for 6. 1 billion and eps coming in at 1. 60, a little softer relatively expectation 1. 8. Despite the beat on subs for this quarter, i guess, juliet, the guide there on next quarter thats dragging the shares down. Absolutely. I think whats really dragging the shares down is the fact that it does appear that they were pulling forward subscriber editions even though they beat the forecast for q3 subscribers is half of what was anticipated by analysts. But the other big headline is that ted sarandos, the content chief of netflix has been named coceo and elected to the board of directors so they have been partners for decades. This change makes formal what was already informal i think it does speak to the new orleans of that creative role at netflix. He will continue to serve as chief content officer and greg peters has been appointed coo in addition to his chief product officer role so some moving of the shares there, but it is really important to know that he is now coceo with founder and ceo Reid Hastings. One other number as well, which if we dive into the new york america net ads, that was a decent beat for the quarter coming in at 2. 9 million, the forecast for that was just under 1 million that often seen as the most profitable region. Lets take into numbers. Bernny, i come to you first, what was your take on these headline numbers certainly so it is the 2. 5 million guide is what matters most thats why stock fell off. Whats interesting as well is operating guide, operating margin guide, 16 for 20 they have a new guide for 21 of 19 . Thats roughly in line with consensus. And Free Cash Flow, they expect this year to break even versus a billion earned before. Almost a flip here that normally you have focussed on subscriber growth the bear normally focussed on the Free Cash Flow probably as something getting into in the subscribers here. On the headline that reid haasings is getting a coceo in ted sarandos, what is the significance of that it is a momentous change for sure its also been a Long Time Coming interestingly enough, ted has been the most visible executive. In fact, hes the one they put out in front of cameras or any time reporters call in they always make him available he also gets paid the same amount but its also been part of the shift where netflix has really moved or shifted from being more of a technology focussed business to an entertainment and media focussed business, and thats really ted. You know, it is the content that drives a business, that drives the new subs not to say that tech isnt important because its a huge part of netflix offering, what differentiates netflix from the other businesses out there netflix still leads on the tech side of things, but it really is a sign of, you know, its more of a hollywood facing business, and thats been teds job. Of course on the content question, big one was when we could get back into production to make sure we didnt fall off a cliff of new production. Theyre back in production they recently resumed production in california. But hope to add more u. S. Production this quarter in north america. The share price down, what, 10 or so. A reminder, it was up 63 year to date coming in to these numbers. Juliet has been digging through the release. I just want to point here to Reid Hastings comments about competition. He knows that all the Major Entertainment Companies Like warner and disney are pushing their own streaming services and two apple and amazon are growing their investment and premium content. He also says tiktoks growth is astou astounding he says we continue to stick to our strategy of trying to improve our service and content every quarter faster than our peers. It is a testament to the approach in the size of Entertainment Market to your point, will, about production, netflix really has been a leader in terms of maintaining production and restarting production during the shutdown so he talks about the success there and how the pouss in production are impacting competitors and suppliers similarly, but because they have such a deep library, he says they member their Member Satisfaction will remain high even though they are starting some production there. Just looking at the impact of covid, they do believe that that user growth will slow down i think thats why theyre forecasting those relatively low numbers for the third quarter, because they believe everything has been pulled forward. Buddy, to come to you next, i mean, the topic of competition which julia was addressing peacock is launches as of yesterday. Is that a threat, or have they shown netflix in the last 12 months that they can kind of fight off all these other new streaming launchers . Yeah. With peacock, i think they will be a leader in Premium Digital advertising over time, but because of things like the olympics getting pushed out, that was really the main content that was supposed to be coming in 2020. So in 2021, you have the office, you have the olympics, nfl wild card playoff time and 22 the olympics again as well as the super bowl so i think eventually peacock could be more of a player in the streaming wards and drive more cord cutting as well as you get high quality sports moving out of the bundle into streaming but i dont think it will be a 2020 theme one other thing i wanted to mention that were focussed on for the calls tonight is any commentary on price increases, the cfo last time around said price increases arent even on their minds. But Revenue Growth we have been looking at high Revenue Growth a year from now and so looking for any commentary there stephanie, stocks down 10. 5 here after hours i guess the guidance numbers do come as a big purchase we expected the first half of the year to see block buster growth here as many parts of the nation were shut down and have been slow to start up. What is your take . Yeah. But the stock rallied 61 and trades at 77 times forward estimates, whatever those estimates are going to be. I think the sub numbers were good, solid. But those numbers had been inching higher all throughout the quarter. Netflix app was downloaded 75 million times in the quarter that is a huge, huge number. Ive think the fact that production is going to restart, that means your cash burn rate goes up. Hes talking about competition to me down 10 , it is not up for me to buy it i would love to see this pulled back more, but it makes me worry about some of these other Technology Stocks that have rallied so much on the work from home theme i think that is something we all have to keep in mind and perhaps maybe that is what the market is starting to sniff out, which is why tech has underperformed the overall market in the last week. When we used to get this release, wed also be reading through the content frachs to see which shows had done best. I guess two questions on that. Is that less key now with this release because they are breaking during the quarter on the app, which the top ten streaming shows at that very moment and secondly, are originals, netflix originals still the key for them Going Forward so, yeah, the data on netflix views has always been a wonky thing. It releases information the way they want to we dont know what the viewer ship is. Youre asking the right question what is going to be more important Going Forward is less the viewer ship numbers than their content schedule in other words, are they releasing enough new stock, where its originals or even licensed stuff that will draw in the new subscribers because studies have shown thats what really matters more than actual viewing because unlike linear television, you know, the more you watch netflix, theyre not making more money. Theyre making more money when people subscribe and stay. So it is the new stuff it is the scheduled releases that actually drives that more than how many people have watched a familiar show or film. We still want to know that stuff, but thats not the driver the driver is going to be the release schedule you know what, their cash burn has to go up it is nice to see their positive recash flow finally again the Second Quarter of doing so, but longer term, you know, they need to keep that up in order to keep people interested and keep people signing up. Well, nothing on the production schedule, but they actually are talking about resuming productions, and theyre mentioning theyre kind through region by region parts of the world depending on how the virus is doing they said theyre furthest along in asia pacific, never fully shut down production in korea. Theyre now shooting live action of a japanese original in emea theyre back to shooting in germany and france they do anticipate that they are going to continue to ramp up production here in the u. S. This quarter. Though, they note the current infection trends are creating more uncertainty on that front sylvia, stock now down 11. 3 after hours. Are you a buyer on the dip here or there are some causes for concern . I think there is some causes for concern, and i think that, again, those come down to the subscriber number. Once production gets up and running, you know, if they have stellar new adds to the platf m platform, i think the continued interest whether its the work from home, study from home situation will have them looking for content. So if they have stellar content and crash all the applications out there and programming out there, then i think they have a shot to really pick up and price again. But i would probably wait and see a little bit and the subscriber number could also change depending on how long the pandemic goes on and people are at home with very little to do so i think its a keep an eye on it, wait and see. Well, randolph, this first discussion on netflix there, thank you, all, to everyone for joining us bernie and ed particularly just to end, though, 25 million new subscribers in the course of 2020 pretty extraordinary stuff there from netflix, even if the share pricing are trading off today. Just want to round out the Broader Market discussion before we go to break what can you draw from a move like that when we see it in a stock like netflix does it suggest to you that the broad tech stocks have run up too far too fast this year definitely on a relative basis i would argue they have run up too far too fast. But the market as a whole, i would argue probably not just yet. What about the fang stocks in particular netflix down 8 . Im not sure it sets the tone, but where do these valuations look to you at this point . So, you know, we have this very unusual and unique situation that basically the mega cap Growth Stocks are beneficiaries of the very negative, big shock that weve had. So its sort of basically you have a negative shock for the economy as a whole with the biggest and strongest are actually, you know, big beneficiaries, and the market has basically looked at them as a way of avoiding the cyclical risk as a place to hide. And so, you know, they have a run up very far, but i would argue, you know, if you want to be neutral, i dont think you want to be underweight they are definitely clear, you know, relative beneficiaries absolutely relative beneficiaries, but thats very much the outlook for the market from here is really about, you know, the rest of the s p 500 rand whether, you know, the market is going to start to get more comfortable with cyclical growth all right. Well leave it there thank you. Good to have you all onboard thank you. Up next, much more on netflixs big earnings miss, and at least the stock selling off the disappointing results and whether netflixs stock will be able to continue its recent rally even as it faces increasing competition from the likes of disney plus and peacock, which is a part of our parent company, nbc universal. Were back in just 90 seconds. Welcome back shares of netflix falling, beating on the top line, adding 10 million subscribers for the Second Quarter, but issuing a weaker than expected outlook for the third quarter. The company also announcing Todd Sarandos will become coceo with Reid Hastings. Shares are down doubt digits in after hours trade. Tom rogers, executive chairman and the first president of nbc cable. Also the former ceo of tivo. Tom, great to see you. Thanks so much for joining us. Just looking at the numbers, adding over the course of the first two quarters of this year 26 million paid net additions, taking the total to 193, is it is it fair to assume they brought forward a lot of demand that will tail off for the second half of the year . Well, they might. But the thing to focus on with netflix is how much superior its model is to all the other streaming services out there, how its the only one with a global play. And globally, theyre 1. 1 billion pay tv cable and satellite subscribers who are disconnecting their cable and satellite as we are finding here in the United States if theyre at about 200 million, they have about 900 million market to tap that is moving in the direction of stream iing, wl around the rest of the world and netflix one is the only one with a Real International footprint right now to be able to capture that. Maybe theyre right. Maybe theyre wrong that they pulled through a number of subscribers. But i wouldnt take your eye put your eye focussed too much on that. There is so much longterm opportunity here this companys story is totally intact. I totally get your point, tom, in terms of the global opportunity. What about in north america . Are they starting to be a bit sch ra saturated there . What does that mean for their overall selling price . Well, they do have about 80 of the cable and satellite subscriber base, so theyre moving in the direction of greater saturation but as more and more people come on that are cord nevers, got to mention the cord cutters, there is demographic trend opportunity there, which is very substantial. Moreover, what netflix has going with the quality and quantity of its programming as your earlier guests were talking about is far more depth in terms of Holding People to the screen, much greater engagement and the biggest problem for streaming services is not so much getting new members its holding them. Its the churn factor. Other services are churning much, much more. And what low churn, which netflix have and i think over time lower churn as it has that much more viewing power, it has pricing power. So here in the United States, i think you will find that it has unique pricing power, even though the rate of it subscriber growth will slow because it is penetrated so heavily. Tom, how do you read the ted sarados being named coceo im trying to think of some examples where this has worked where you have a founder, coceo it didnt really work out at sales force. What do you think of it . These guys clearly have a hell of a partnership that they have been able to do what theyve done on the programming side you have to tip your hat to netflix. I remember in my nbc days when we used to scratch our head, why cant there be more than one or two hits a season, modest hits often at that, and the issue was always, well, there is just not enough good enough writers out there. Well, netflix found a lot of good writers, and its elevated it to where it is and he deserves that kind of recognition. And reid is so well entrenched as a visionary who has brought this forward they clearly work extremely well together and my guess is this will work very well. What do you think, tom, of the way the pandemic not just influenced their subscriber numbers but the way were consuming feature length movies, not just series . Well, thats a really interesting point there because the Movie Theater industry, threatrical release window i think will be the thing in the entire Media Industry that gets most damaged by the pandemic my expectation is youve got a lot of movies that were ready for release, cant be released studios running to netflix and say, please, please, will you buy this from me because they really have a problem here in terms of when theaters are going to reopen nationally in a way that Box Office Revenues will be restored so coming out of the pandemic, i expect the impact of that to be much shorter theatrical windows, meaning movies in the theaters for a shorter period of time and less exclus sieivitexclusivity. Thats going to put more on streaming services and netflix, having the biggest budgets, not to mention producing their own i think you are going to see more and more theatricals being a matter of streaming and less and less about Movie Theater viewing. Tom rogers, always good to get your thoughts. Thanks for joining us. Thanks for having me, sara. Netflix shares moving all around after hours now down 9 . They were down more than 11 just a few moments ago after that report. Up next, the waiting game. Find out how local governments are stepping in to help residents who still have not received unemployment relief payments from the federal government and as a reminder, you can always watch or listen to us ven li othe go on the cnbc app well be right back. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back the dow fell today snapping a four day win streak. The nasdaq underperforming as it has been all week. Nasdaq down 2 or so joining us on the phone, russ. Great to have you with us. Want to talk about this rotation weve had in the last week or so out of tech into value and whether you think thats going to continue and whether you think that netflix being about 10 lower after hours will sort of infect the rest of tech in a more meaningful way than weve already seen so far this week well, thanks for having me. In the short term, i think there is definitely the potential for more of a pull back, more of a rotation as a number of people pointed out, the differential between large cap growth and Large Cap Value is off the charts. You will have a period where there is a little bit of catchup makes sense. But there are two things that i think will be more difficult longterm for value. You know, the most important of which is that i dont think technology is as overpriced as it looks it has definitely stretched but on a longer term basis when you look at the earnings growth, there is a reason it trades at a premium. This is a strange week to see rotation into value and cyclicals when you consider that one of the things the market is wrestling with is the acceleration of the virus, the pullback in mobility, the reimposition of lockdowns generally valued when the economy is expected to accelerate and some of the events of the last week make that a little bit more in question so im a little suspicious of the timing of this move. In terms of what that means for your portfolio construction, on one level you are saying, you know, we should take some profits in tech. On the other level, youre saying we shouldnt necessary buy into value so you are selling equities across the board were doing a couple things we are trimming our Technology Exposure but at the margin, we are trimming we are adding to cyclicals but i think it really makes a difference where you are adding. You are more concerned about the rotation to lower quality names, names very dependent on mobility there are parts of the cyclical space that you look at industrials and materials. The Housing Market as well that we think are more robust, have an easier time coinciding with the virus than the names that have been up 30 or so over the past few weeks. So are you making a call on whether the economy rebounds quickly or are you saying youre less optimistic . Well, i think our view is the economy is going to rebound. It is rebounding it is better than expected but it is not all clear. Generally, if you look at the periods when value has really ripped for more than a few days at a time and the one i point to would be the back half of 2016 there was a prolonged period when Economic Expectations went up, rates went up and people were more constructive on the economy. To be clear, i think stocks can be higher six months from now than they are today, but it is not a straightforward path we have an election to deal with we also have this question of whether or not we will see more lockdowns, all of which means some of the lower quality cyclical names i think this rally will probably fade. What happened to gold today it slipped to 4 right at the middle of the day all of a sudden. Yeah. Gold has been a really interesting case you know, we have had gold in our portfolio. We continue to have it but thats another place where we are looking to trim and the challenge with gold is, you know, people debate why do you hold it . A lot of people talk about inflation. I dont think thats quite right. You hold gold as a cage against equity risk. If you look at golds performance, its actually been trading more with equities than against it it doesnt mean gold wont go higher, but at the margin if you hold gold because you are worried about stocks, if gold is going to be stocks, you will probably hold a bit less, which is why we have been trimming what is your expectation around fiscal stimulus and what the next package looks like and where it goes and how much of it is baked in already . Well, i think that, you know, the simple answer is were going to get more of it. Whether that number is 800 billion or a trillion or more, i dont have a strong view i think most of that is baked in it would be very hard to imagine that politicians, whether in the white house or congress, are going to let the economy fall off this fiscal cliff, if you will, that would be happening at the end of the month i think we are going to see some, you know, extension of Unemployment Benefits, some of the marginal dollars that have gone into that the question is how much and also in what form . Again, the consumer has managed to hold in there because transfer payments to households surged you have seen disposal income go up year after year thats never happened in a recession. The question se wet through this package, how much more will you see fall into the households will there be a deceleration our guess is you get the stimulus probably not quite as much as maybe the market would like russ koesterich, thanks for joining us. Thank you. Up next, millions of americans waiting for the next round of stimulus as we just talked about from congress with programs expiring at the end of the month. But many are still waiting for Unemployment Benefits from the first round. That story is coming next. How does the world reopen for business . To return to the workplace, safely, companies will need the right tools. Thats why salesforce created work. Com its an allnew suite of apps, expertise, and services. To manage this crisis today, and thrive tomorrow. Everything Companies Need to return to the workplace. Lets reopen. Safely. Congress is currently discussing another Coronavirus Relief package, but Many Americans havent even received payments from the first round of stimulus the details. Hi, sa yes. Local lawmakers are now taking matters into their own plans in oregon, legislators this week yunanimously approved a program that will issue onetime 500 checks the states Coronavirus Relief fund will finance the 35 Million Program and were told that recipients will not have to repay the money and it will not be deducted from future benefits and a similar proposal is also being considered in wisconsin where 140,000 people are waiting. Officials say they are prioritizing the applicants who have been waiting the longest. Since march 15th, they have processed 80 of all claims. You have to wonder if theys any consullation to the people who havent received anything yet. Is this a state issue or a federal government issue its a state issue because you cant receive the additional 600 until you have been approved at the state level. So it is a state issue, and were seeing it at different states around the country and people have reached out to me on social media saying the same thing. Some people have been waiting since march. So part of these numbers are a backlog. Part of this is just people trying to get through the administrative process that comes with filing for unemployment Officials Say they are prioritizing people who have been waiting the longest but it speeaks to the unprecedented demand. Thank you very much we speak to the president of Arizona University about whether the school will charge full tuition if theyre ford g cko remote learning. Time now for a cnbc news upset with sue herera. Hello, everyone heres whats happening at this hour cruise ships will not be able to sail in the u. S. Waters until at least october as the cdc extends its ban for a second time i. Says between march and early july there were 99 outbreaks on 123 different ships. You can go to cnbc. Com for more on the numbers behind that ban. Mary trumps memoire sold almost one million copies just from preorders that is a company record. Usa today has added a note to white house trade adviser peter navorros op ed saying several of its criticisms were misleading the white house has already distanced itself from navorros article. And in a clash of cultural references, the savannah bananas of the coastal plain leagues celebrated sint patricks day in july by wearing kilts as they defeated the macon bacon 51 strange times indeed that is the news update at this hour sara, baseball in kilts, ill send it back to you. At least theyre playing again. Thank you. Sue herera coming up, when school is out, the economy is out well talk to the president of the university of arizona to find out how he is planning to return to classes. How important it is for the recovery and managing that return in a covid hot spotlight now. Be sure to tune in tonight a virtual live town hall featuring Financial Experts helping americans affected by the crisis rebuild their financial future thats tonight 7 00 p. M. Eastern on cnbc. Sponsored by comcast business, committed to keeping you and your business connected. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Educators are scrambling to figure out how to reopen schools safely this fall in an exclusive poll of likely voters in six key swing states, half of voters in arizona and texas say in Person Instruction is not safe for universities this also presents a pretty big issue if you are not going to campus, should you have to pay full tuition 72 of swing state voters say no come monday students at the university of arizona will know if their classes will be in person, online or a mix of both. Leaving the decision up to the professors joining us now is the president of the university of arizona, former ceo of Texas Medical Center thanks for being it was. You are leaving the decision up to the teachers. How does that work exactly yeah, sara. Thanks for having me on your program. We will. Students will be able to get on the website on monday and find the course theyre going to take, and then its at the discretion of the professor whether it will be an in person class, whether it will be an in person flex class meaning some students would come into the class say tuesdays and thursdays and the others would be online monday, wednesday, friday and then they would flipflop that then the third option would be a live online version. And the fourth would be so that would be sinry nous then the fourth would be icourses i guess im just so the students would have to pay full tuition, correct and also room and board and come to the dorms but might not be able to actually attend classes. Why would they want to do that well, thats a good question, sara there are plenty that want to. Weve got we converted our 9,000 bed capacity of on Campus Housing down to about 6,600. And we have full subscription and people have paid their they paid their deposits and we are anticipating that theyre going to show up to live in our dorms. They have even said that even if we take our Classes Online they want to live in our dorms and be in tucson. I think that its a combination of wanting to get back to have the opportunity to be on the campus and continue their education. So were going with full tuition for those who choose to come to university in the fall. So it is a little confusing, i have to say. So people could come back, live in the dorms but still be doing a class online, potentially not even live online. Correct but i think there is going to be a lot of flexibility, and i think there will be a mixture of both in person and online classes. But, again, the flex would be sort of rotating for face to face and then the online would be they would be i guess the other thing, sorry, doctor, is that if things are safe enough to allow people to come back to dorms and you are charging full rates, surely those students deserve full proper tuition or its not safe enough in which case they shouldnt be coming back to the dorms. Yeah. Well, were watching it closely. Obviously were in a hot spot. We think that with people following the rules properly physically distancing and covering their face and washing their hands, we can flatten the curve and make it acceptable for students to come back. They have told us they want to come back, so were going to take a very aggressive testing, tracing and isolation protocol and offer these various options to students who choose to come and continuing their education at university of arizona how does the testing work how often and how will you ensure that you get enough tests and that those tests can come back quickly enough to actually keep people safe and quarantined until they do . I think most of the audience knows we have pioneered an antibody test. That is something we have offered all our students, faculty and staff. The current protocol would have and i changed on this because of the hot spot being in arizona, were hoping the curve is going to be flattened out but were now going to require all the students before they check in to class into their dorms, they must be tested so were going to use an antigen test that will turn around quickly. If theyre positive, they wont be allowed to go in the dorms. We made provisions for isolation dorms. They would still be able to take their classes in an online version. But well use a protocol to test before they go into the dorms. And then well use waste water based epidemiology we have an algarhythm for surveillance tersing throughout the year anybody who has symptoms will be tested with a standard pcr test. Wanted to ask about three things that everybody thinks of with college, which pretty high contact or at least would seem risky. Sororities, fraternities and sports, how are you dealing with all that yeah. Well, the sports were dealing with through the pac12. Since were a proud member of the pac12, and were grinding on this every day and discussing how were doing it weve got some of our Football Team back here, and they are undergoing extensive testing right now. The fraternities actually are not in our campusowned housing, but were reaching out to them and engaging them, and we have had great discussions with them about the need to follow the rules. I think thats the most important that students realize that if their watch your hands frequently, they cover their face and they use physical distancing, we could get this down to a manageable level weve just got to have our students buy into following the rules. So far our fraternities and v sororities have cooperated greatly. We cant guarantee that there wont be any cases obviously there will be cases. We just want to be able to mitigate, identify those cases, trace their contacts and isolate them thanks so much for joining u us up next, the financials index. Well have more on the resurgen wceith earnings ahead you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. 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The headline for them, they beat q2 expectations, adding 10 million subscribers but missed expectations in terms of their guides for q3, saying theyre only expecting about 2. 5 million when they were forecast for 5. Up next, your wall street look ahead key things every investor needs to know and to watch im searching for info on options trading, and look, it feels like im just wasting time. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Oh. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now youre binge learning. See how you can become a smarter investor with a personalized education from Td Ameritrade. Visit tdameritrade. Com learn visit tdameritrade. Com learn now is the time to support the places you love. Spend 10 dollars or more at a participating Small Business and get 5 dollars back, up to 10 times with american express. Enroll now at shopsmall. Com. Lets take a look at how we finished up the day. The dow did break a fourday win streak, closed down. 5 . That was off of sessions lows down almost 300 at one point s p 500 finished by onethird of 1 technology did not finish higher in the s p groups like materials, industrials and safety plays like utilities all ended in the green. The big banks earnings are in the books but we get a key look at another part of the Financial Sector tomorrow. We have a preview of black rock. Never you fear, well see earnings from traditional Asset Managers starting with the biggest one, black rock, storm morning. A blackrock declined by a trillion dollars in the first three months of the year thanks to covidrelated selloffs and weaker flows with a much improved market environment, analysts are expecting blackrock to grow, jumping 9 from last year. I think one key question for mr. Fink in this market is the tech underperformance, more of a lasting trend. It always came back to the big fang names the resilient players, whether we were talking about a stayathome economy with some of the reopening happenilting as the country as a result of the virus or even the reopening story where these were growth plays. The underperformance, whether that opens up the opportunity for more value plays in industrials and materials could be a key question. Absolutely. I through youre bang on with the netflix point, down 10 now. It was up 63 year to date very much focusing on the guide for q3 as to why thats down. Yes, were seeing that rotation, yes, were seeing netflix down 10 which is a warning sign overnight. But netflix does often act on its own as opposed to infecting the rest of fang if this was an apple or microsoft move, youd be much more concerned about the broader indices tomorrow. For sure. Netflix also has some wild swings and big down days on earnings, then its back up to climbing and reaching record highs. The question is, has the thesis really changed it will be interesting to hear what they say on the call after what has been a tremendous first half. You know what would drive the stock on the call, if they announced the new season of the tiger queen with carol baskin. Were out of time. Fast money starts now. Fast money starts right now. Im melissa lee with guy adami, tim seymour, Karen Finerman and steve grasso a new wrench in the trade relationship between the u. S. And china. Later, the high profile attack on twitter now the subject of a probe. Plus dr. Fauci sitting down with a live interview with Mark Zuckerberg as we speak well bring you headlines from the event as we have them. And a fast pitch from karen. Why she says this k